Atico Mining Secures Substantial Financing for La Plata Project
Atico Mining Corporation (TSX‑V: ATY) has announced a new funding package that will enable the company to advance the construction of its La Plata copper‑gold project in Ecuador. The package combines a secured project‑finance facility with a convertible debenture, totaling US$111.4 million (US$95 million in project finance plus US$16.4 million in convertible debt).
Project‑Finance Facility
The primary component is a US$95 million secured facility supplied by Trafigura PTE. Ltd., a global commodities trading firm with an established relationship with Atico. The facility is structured as a credit agreement in which Trafigura will provide funds to La Plata S.A. (CMLP), the project‑level borrower, on a drawdown basis. The loan will be available for approximately 2.5 years, commencing upon the start of construction or by March 31 2027, whichever occurs first, and will mature seven years thereafter. Interest is calculated at Adjusted SOFR plus 7.5 % per annum. Standard financial covenants and a parent guarantee from Atico are included, with the guarantee released once the project is completed.
Convertible Debenture
In addition to the project facility, Atico entered into a subscription agreement for a secured convertible debenture with a face value of US$16.4 million. The debenture is issued to an affiliate of Trafigura through a non‑brokered private placement. The instrument provides debt security and the option to convert into Atico shares at a predetermined conversion price, thereby offering investors a hybrid risk‑return profile.
Strategic Impact
CEO and Director Fernando E. Ganoza emphasized that the financing package reflects a competitive review of alternatives and represents a “strong vote of confidence” in the La Plata project’s viability. The capital will be deployed for pre‑construction activities, strengthening Atico’s balance sheet while advancing the development of what the company describes as Ecuador’s next significant gold‑and‑copper mine.
Atico’s market performance has shown volatility in recent months, with a close of CAD 0.24 on 30 September 2026 and a 52‑week high of CAD 0.42 earlier in the year. The infusion of US$111.4 million provides the financial flexibility needed to navigate the project’s capital‑intensive construction phase and to potentially unlock value for shareholders as the mine progresses toward production.
Conclusion
The combination of a substantial project‑finance facility and a convertible debenture positions Atico Mining to move decisively toward the La Plata project’s construction, while also enhancing liquidity and shareholder value. As the company enters the next phase of development, stakeholders will be watching closely to see how this financing translates into operational milestones and, ultimately, into production output.
